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DA 04-3209
VIA CERTIFIED MAIL
RETURN RECEIPT REQUESTED
John Dotson
2850 Webb Avenue, Apt. 4H
Bronx, NY 10468
Re: Notice of Suspension and of Proposed Debarment
File No. EB-04-IH-0460
Dear Mr. Dotson:
The Federal Communications Commission (``FCC'' or
``Commission'') has received notice of your conviction on or
about May 17, 2004 pursuant to 18 U.S.C. § 371 for conspiracy to
defraud the United States. 1 Specifically, you were convicted of
conspiracy to violate the following laws of the United States:
(1) 18 U.S.C. § 287 (false, fictitious, and fraudulent claims);
(2) 18 U.S.C. § 1001 (false statements and entries generally);
and (3) 18 U.S.C. § 1343 (fraud by wire, radio, or television).
Consequently, pursuant to 47 C.F.R. § 54.521, this letter
constitutes official notice of your suspension from the schools
and libraries universal service support mechanism, also known as
the E-Rate program. In addition, the Enforcement Bureau
(``Bureau'') hereby notifies you that we are commencing debarment
proceedings against you.2
I. Notice of Suspension
Pursuant to section 54.521(a)(4) of the Commission's rules,3
your conviction requires the Bureau to suspend you from
participating in any activities associated with or related to the
schools and libraries fund mechanism, including the receipt of
funds or discounted services through the schools and libraries
fund mechanism, or consulting with, assisting, or advising
applicants or service providers regarding the schools and
libraries support mechanism.4 Your suspension becomes effective
upon the earlier of your receipt of this letter or publication of
notice in the Federal Register.5
Suspension is immediate pending the Bureau's final debarment
determination. You may contest this suspension or the scope of
this suspension by filing arguments in opposition to the
suspension, with any relevant documentation. Your request must
be received within 30 days after you receive this letter or after
notice is published in the Federal Register, whichever comes
first.6 Such requests, however, will not ordinarily be granted.7
The Bureau may reverse or limit the scope of suspension only upon
a finding of extraordinary circumstances.8 Absent extraordinary
circumstances, the Bureau will decide any request for reversal or
modification of suspension within 90 days of its receipt of such
request.9
II. Notice of Proposed Debarment
II.A. Reasons for and Cause of Debarment
Commission rules establish procedures to prevent persons who
have ``defrauded the government or engaged in similar acts
through activities associated with or related to the schools and
libraries support mechanism'' from receiving the benefits
associated with that program.10 Based on your February 13, 2004
guilty plea, you were convicted on or about May 17, 2004 of
conspiracy to defraud the Government by selling E-Rate services
through Connect2Internet Networks, Inc. (``Connect2'') to certain
schools participating in the E-Rate program but charging 100
percent of the costs to the program rather than requiring the
schools to pay ten percent of the costs as required by the
program rules.11 In particular, you admitted to combining,
conspiring and carrying out, with other co-conspirators, the
following acts: (1) falsely representing to certain schools that
they could participate in the E-Rate program at no cost to them,
and that their share of the costs would be covered by outside
sources donated to Connect2 for that purpose; (2) requesting
certain school officials to write checks payable to Connect2
while agreeing either not to cash them or to return those monies
to the schools or their designees; and (3) creating back-dated
phony billing documents that give the false appearance that
Connect2 had billed the schools for their costs.12 These actions
constitute the conduct or transactions upon which this debarment
proceeding is based.13 Moreover, your conviction on the basis of
these acts falls within the categories of causes for debarment
defined in section 54.521(c) of the Commission's rules.14
Therefore, pursuant to section 54.521(a)(4) of the Commission's
rules, your conviction requires the Bureau to commence debarment
proceedings against you.
II.B. Debarment Procedures
You may contest debarment or the scope of the proposed
debarment by filing arguments and any relevant documentation
within 30 calendar days of the earlier of the receipt of this
letter or of publication in the Federal Register.15 Absent
extraordinary circumstances, the Bureau will debar you.16 Within
90 days of receipt of any opposition to your suspension and
proposed debarment, the Bureau, in the absence of extraordinary
circumstances, will provide you with notice of its decision to
debar.17 If the Bureau decides to debar you, its decision will
become effective upon the earlier of your receipt of a debarment
notice or publication of its decision in the Federal Register.18
II.C. Effect of Debarment
If and when your debarment becomes effective, you will be
prohibited from participating in activities associated with or
related to the schools and libraries support mechanism for at
least three years from the date of debarment.19 The Bureau may,
if necessary to protect the public interest, extend the debarment
period.20
Please direct any responses to the following address:
Diana Lee, Esq.
Federal Communications Commission
Enforcement Bureau
Investigations and Hearings Division
Room 4-A265
445 12th Street, S.W.
Washington, D.C. 20554
If you submit your response via hand-delivery or non-United
States Postal Service delivery (e.g., Federal Express, DHL,
etc.), please send your response to Ms. Lee at the following
address:
Federal Communications Commission
9300 East Hampton Drive
Capitol Heights, MD 20743
If you have any questions, please contact Ms. Lee via mail, by
telephone at (202) 418-1420 or by e-mail at diana.lee@fcc.gov.
If Ms. Lee is unavailable, you may contact Eric Bash by telephone
at (202) 418-1420 and by e-mail at eric.bash@fcc.gov.
Sincerely yours,
William H. Davenport
Chief
Investigations and Hearings
Division
Enforcement Bureau
cc: Philip L. Weinstein, Federal Defender Division Legal Aid
Society
Kristy Carroll, USAC
David M. Siegal, Assistant United States Attorney, Southern
District of New York
_________________________
1 Any further reference in this letter to ``your conviction''
refers to your conviction on or about May 17, 2004 of this count
based on your participation in a fraudulent scheme to obtain
schools and libraries E-Rate program funds. See United States v.
Dotson, Docket No. 1:03cr01113BSJ, Indictment (S.D.N.Y. filed
September 17, 2003) (``Dotson Indictment''); United States v.
Dotson, Docket No. 1:03cr01113BSJ, Judgment (S.D.N.Y. May 17,
2004) (``Dotson Judgment'').
2 47 C.F.R. § 54.521; 47 C.F.R. § 0.111(a)(14) (delegating to
the Enforcement Bureau authority to resolve universal service
suspension and debarment proceedings pursuant to 47 C.F.R. §
54.521).
3 47 C.F.R. § 54.521(a)(4). See Schools and Libraries Universal
Service Support Mechanism, Second Report and Order and Further
Notice of Proposed Rulemaking, 18 FCC Rcd 9202, 9225-9227, ¶¶ 67-
74 (2003) (``Second Report and Order'').
4 Second Report and Order, 18 FCC Rcd at 9225, ¶ 67; 47 U.S.C. §
254; 47 C.F.R §§ 54.502-54.503; 47 C.F.R. § 54.521(a)(4).
5 Second Report and Order, 18 FCC Rcd at 9226, ¶ 69; 47 C.F.R. §
54.521(e)(1).
6 Second Report and Order, 18 FCC Rcd at 9226, ¶ 70; 47 C.F.R. §
54.521(e)(4).
7 Second Report and Order, 18 FCC Rcd at 9226, ¶ 70.
8 47 C.F.R. § 54.521(f).
9 See Second Report and Order, 18 FCC Rcd at 9226, ¶ 70; 47
C.F.R. §§ 54.521(e)(5), 54.521(f).
10Second Report and Order, 18 FCC Rcd at 9225, ¶ 66.
11See Dotson Indictment at 2, 3; Dotson Judgment.
12Dotson Indictment at 4-5.
13Second Report and Order, 18 FCC Rcd at 9226, ¶ 70; 47 C.F.R. §
54.521(e)(2)(i).
14``Causes for suspension and debarment are the conviction of or
civil judgment for attempt or commission of criminal fraud,
theft, embezzlement, forgery, bribery, falsification or
destruction of records, making false statements, receiving stolen
property, making false claims, obstruction of justice and other
fraud or criminal offense arising out of activities associated
with or related to the schools and libraries support mechanism.''
47 C.F.R. § 54.521(c). Such activities ``include the receipt of
funds or discounted services through the schools and libraries
support mechanism, or consulting with, assisting, or advising
applicants or service providers regarding schools and libraries
support mechanism described in this section ([47 C.F. R.] §
54.500 et seq.).'' 47 C.F.R. § 54.521(a)(1).
15See Second Report and Order, 18 FCC Rcd at 9226, ¶ 70; 47
C.F.R. §§ 54.521(e)(2)(i), 54.521(e)(3).
16Second Report and Order, 18 FCC Rcd at 9227, ¶ 74.
17See id., 18 FCC Rcd at 9226, ¶ 70; 47 C.F.R. § 54.521(e)(5).
18Id. The Commission may reverse a debarment, or may limit the
scope or period of debarment upon a finding of extraordinary
circumstances, following the filing of a petition by you or an
interested party or upon motion by the Commission. 47 C.F.R. §
54.521(f).
19Second Report and Order, 18 FCC Rcd at 9225, ¶ 67; 47 C.F.R.
§§ 54.521(d), 54.521(g).
20Id.